agency. From that position, Walsh hand-
the idea of expanding urban-growth bound-
ed out millions of dollars in subsidies to
aries to make room for growth. In 1993,
high-density, transit-oriented develop-
Oregon homebuilders asked the legislature
ments, many of which were built by
to require that boundaries be expanded to
Walsh Construction.
maintain a supply of land, but Portland plan-
ˇ Homer Williams--Goldschmidt arranged for
ners convinced the legislature to allow them
to instead accommodate growth by rezoning
hundreds of millions of dollars of federal
existing neighborhoods to higher densities.
and local subsidies to an urban-renewal
In the meantime, Goldschmidt announced
area popularly known as the Pearl
in 1990 that he would not run for re-election as
District. Goldschmidt client Homer
governor. His decision, which he blamed on
Williams built many of the develop-
marital issues, was mysterious, as most people
ments in the Pearl and, later, the North
believed he would have easily been re-elected
Macadam District.
ˇ Schnitzer Group and Zidell Marine--Owners
and probably gone on to the U.S. Senate.
Portlanders later learned that the woman he
of a large block of former industrial lands
had seduced when she was a teenager was seek-
on Portland's Willamette River waterfront
ing a settlement--he eventually paid her
south of downtown, an area called either
$350,000--and he feared the statutory rape
the North Macadam or South Waterfront
would be made public.12
district. They hired Goldschmidt to help
them plan a low-rise residential develop-
Out of office, Goldschmidt immediately
ment, but Goldschmidt persuaded them
started a political consulting firm that eventu-
to go for a high-rise development instead.
ally became known as Goldschmidt Imeson
The development, which is being built by
Carter. Early clients included Bechtel, Nike,
Homer Williams, is enjoying nearly $300
and Weyerhaeuser. Goldschmidt used his
million in public subsidies.
many federal, state, and local political contacts
ˇ Oregon Health Sciences University--
to grease the skids for those companies to
operate in Oregon's regulatory environment.
Goldschmidt served on the board of
Goldschmidt also used his political muscle to
directors of this nominally public
have friends, relatives, and political protégés
school that operates a hospital two-
appointed to various high offices.
thirds of a mile away and 500 feet above
The resulting light-rail mafia shaped
the Schnitzer-Zidell land. Goldschmidt
Oregon's integrated land-use and transporta-
persuaded the hospital to build an aer-
tion planning system to favor Goldschmidt's
ial tramway to access offices and clinics
After 1990,
clients and friends. Some of the members of
in the waterfront development and
Goldschmidt
the mafia included:
convinced the Portland city council to
help subsidize this tram, whose cost
built a "light-rail
ˇ Bechtel Corporation--Goldschmidt arranged
ballooned from Goldschmidt's initial
mafia" consisting
$5 million estimate to $57 million.13
for Bechtel to receive a no-bid contract to
of contractors,
build an extension of Portland's light-
rail line to the city's airport. Under the
Goldschmidt's efforts were not entirely
developers, and
contract, Bechtel was paid $95 million
directed to land-use and transportation issues.
landowners eager
and given a 99-year lease to 120 acres of
In 2003, he was involved in a shady deal to take
valuable land near the airport.
over Portland General Electric, a utility that
to cash in on the
ˇ Tom Walsh--Longtime Goldschmidt
served two-thirds of Portland's residents.14 The
city's rail transit
friend and co-owner of Walsh Construc-
State Accident Insurance Fund paid him a mil-
and high-density
tion, which specializes in building high-
lion dollars to help shield the government
density housing projects. Goldschmidt
agency from private competition. Goldschmidt's
development
arranged for Walsh to be appointed gen-
wife was superintendent of Portland's schools,
mania.
eral manager of Portland's transit
which hired Goldschmidt's brother in a lucra-
4